Size of Business in BDT crore 6000 5 7500 3000 5999 4 The size of the borrowers

Size of business in bdt crore 6000 5 7500 3000 5999 4

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1. Size of Business (in BDT crore) > 60.00 5 75.00 30.00 59.99 4 The size of the borrower's business 10.00 29.99 3 measured by the most recent year's 5.00 - 9.99 2 total sales. Preferably audited numbers. 2.50 - 4.99 1 < 2.50 0 2. Age of Business > 10 Years 3 10 > 5 - 10 Years 2 The number of years the borrower 2 - 5 Years 1 engaged in the primary line of business < 2 Years 0 3. Business Outlook Favorable 3 Favorable Critical assessment of medium term Stable 2 prospects of industry, market share Slightly Uncertain 1 and economic factors. Cause for Concern 0
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25 4. Industry Growth Strong (10%+) 3 No Growth (<1%) Good (>5% - 10%) 2 Moderate (1%-5%) 1 No Growth (<1%) 0 5. Market Competition Dominant Player 2 Dominant Player Moderately Competitive 1 Highly Competitive 0 6. Entry/Exit Barriers Difficult 2 Difficult Average 1 Easy 0 Total Score- Business/Industry Risk 18 C. Management Risk 12% 1. Experience More than 10 years in the related line of business 5 More than 10 years in the related line of business
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26 Quality of management based on total 5 10 years in the related line of business 3 # of years of experience of the senior 1 5 years in the related line of business 2 Management in the Industry. No experience 0 2. Second Line/ Succession Ready Succession 4 Succession within 2-3 years Succession within 1-2 years 3 Succession within 2-3 years 2 Succession in question 0 3. Team Work Very Good 3 Very Good Moderate 2 Poor 1 Regular Conflict 0 Total Score- Management Risk 12 D. Security Risk 10% 1. Security Coverage (Primary) Fully Pledged facilities/substantially cash covered / Reg. Mortg. for HBL 4 Registered Hypothecation (1st Charge/1st Pari passu Charge)
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27 Registered Hypothecation (1 st Charge/1st Pari passu Charge) 3 2nd charge/Inferior charge 2 Simple hypothecation/Negative lien on assets 1 No security 0 2. Collateral Coverage (Property Location) Registered Mortgage on Municipal corporation/Prime Area property 4 Registered Mortgage on Pourashava/Semi- Urban area property Registered Mortgage on Pourashava/Semi-Urban area property 3 Equitable Mortgage or No property but Plant and Machinery as collateral 2 Negative lien on collateral 1 No collateral 0 3. Support (Guarantee) Personal Guarantee with high net worth or Strong Corporate Guarantee 2 Personal Guarantee with high net worth or Strong Corporate Guarantee
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28 Personal Guarantees or Corporate Guarantee with average financial strength 1 No support/guarantee 0 Total Score- Security Risk 10 E. Relationship Risk 10% 1. Account Conduct More than 3 years Accounts with faultless record 5 More than 3 years Accounts with faultless record Less than 3 years Accounts with faultless record 4 Accounts having satisfactory dealings with some late payments. 2 Frequent Past dues & Irregular dealings in account 0
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29 2. Utilization of Limit More than 60% 2 65.00% (Actual/projection) 40% - 60% 1 Less than 40% 0 3. Compliance of Covenants / Full Compliance 2 Full Compliance Conditions Some Non- Compliance 1 No Compliance 0 4. Personal Deposits Personal accounts of the key business Sponsors/ Principals are maintained in the bank, with significant deposits 1
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